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Debt Agreement Contract

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Debt Agreement Contract

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Debt Agreement Contract Template

The Lender has loaned to Borrower the amount of $_____ on the date of____/____/____. Both agree that the loan is a debt owed by the Borrower and will be paid to the Lender.

Interest shall accumulate on the unpaid balance of the loan at a rate of _____% APR and compounded monthly. All interest that accumulates will be added to the balance of the unpaid loan.

The Borrower will make payments to the Lender on the _____ day of each month and individual payments may not be anything less than $_____.

If a payment is past due, a penalty of $_____ will be added to the unpaid balance of the loan.

If a check written by Borrower "bounces" a charge of $_____ shall be added to the unpaid balance of the loan, and all future payments will only be accepted in guaranteed funds such as cash, money order, or certified check).

The full balance shall be paid by no later than ____/____/____.

If the entire balance due is not paid by ____/____/____, or if Borrower does not make a payment for more than thirty days after it is due, then the Lender shall be granted the ability to demand the entire balance due and may take any legal actions that are necessary to collect the above mentioned loan.

If there are any additional costs of collecting the said loan they shall be added to the balance of the amount owed by the Borrower.

If the debt goes to collection the interest rate shall increase to _____% APR and compounded monthly, in addition a penalty of $_____ will also be added to the balance due.

In agreement to the above mentioned terms the Lender and Borrower sign below:

Applicable Law

This contract shall be governed by the laws of the State of __________ in __________ County and any applicable Federal Law.

______________________________________ Date____________
Signature of Lender

______________________________________ Date____________
Signature of Borrower

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